Genworth renews contract with NAB Broker

LMI provider Genworth has announced that it has renewed its supply and service contract with NAB Broker for a further two years.

The contract will last from November 2015 to November 2017, with a 12-month extension option.

The current contract, which is due to expire on 20 November, represented 11 per cent of Genworth’s gross written premium in 2014, according to Genworth.

Genworth said it was pleased that its “product offering and capital strength continues to be recognised in this long-standing and mutually beneficial relationship with NAB”.

The announcement comes after Genworth conceded in February that it would feel the “full effect” of Westpac’s decision to terminate its agreement with the group.

The major bank advised Genworth that it had completed a strategic review of all of its lenders’ LMI arrangements for all new residential mortgage loans with a loan to value ratio (LVR) greater than 90 per cent.

The LMI business underwritten under this contract represented 9.5 per cent of Genworth’s new insurance written in 2014 and accounted for 14.0 per cent of gross written premium in 2014.